Consumer confidence up as UK reopens

The index found that overall consumer confidence was at -9 in May, a six-point increase on the previous month.

The figures were driven by a 15-point increase in expectations for the general economic situation for the year ahead, up to a score of four.

There was also a 10-point increase in confidence in the general economic situation over the past 12 months in the UK, albeit still with a score of -48.

The index is based on a survey of 2,000 individuals between 4th May and 13th May 2021, with scores above zero reflecting a positive outlook, and below zero a negative outlook.

The savings index was at +22, which was the same as April, and the major purchase index rose five points to -7, a score that is 40 points higher than in May 2020.

Survey respondents rated their personal financial situation for the previous 12 months at -4, which was one point down from April and the same as May 2020. The forecast for personal finances over the next year stayed the same as April at +10.

The scores come as the UK eased restrictions in April on hospitality, retail and social activity.

Joe Staton, client strategy director at GfK, said: “These findings reflect April’s ‘feelgood’ re-opening of outdoor pubs, shops, gyms and hairdressers combined with continuing vaccination success.

“In addition, we’re seeing a healthy five-point uptick in the major purchase index, with more consumers seizing the opportunity to splash the ‘accidental savings’ that some have collected. Now really is a good time to buy. Growing confidence is fuelling the economy and only a reversal to lockdown can dampen this solid momentum.”